Bajaj Auto's Rs 5,633 Crore Buyback: What Every Shareholder Needs to Know Before June 24

If you hold Bajaj Auto shares, the next few days matter more than most. The company has announced a significant share buyback — and the record date is just around the corner. Whether you are a long-term investor or someone who picked up shares recently, here is everything laid out clearly so you can make a well-informed call.

What Is This Buyback Actually About?

On 6 May 2026, Bajaj Auto's Board of Directors gave the green light to buy back up to 46,94,000 fully paid-up equity shares at a price of ₹12,000 per share. The total outlay? Up to ₹5,633 crores — and that figure excludes transaction costs like brokerage, taxes, and filing fees.

In this regard, the number of repurchased shares constitutes 1.68% of the total equity capital of the company. While it is not a very big percentage, yet the per share price and the total amount indicate that Bajaj Auto is serious about this activity.

The shareholders had approved the same by a special resolution through postal voting and then the buyback committee was constituted for taking all execution-related decisions. The record date was announced by the company on 18 June 2026.

Bajaj Auto Buyback Record Date Is June 24, 2026

This is the single most important date right now. The record date has been fixed as Wednesday, 24 June 2026. Only those shareholders whose names appear in the register — or who hold shares in demat form as beneficial owners — on this date will be eligible to participate in the buyback.

If you are planning to buy shares to participate, remember that Indian stock markets follow a T+1 settlement cycle. That means you need to have purchased and settled your shares at least one trading day before the record date to be counted as an eligible shareholder.

The Route: Tender Offer, Not Open Market

Bajaj Auto has chosen the Tender Offer route for this buyback, as permitted under the SEBI (Buy-Back of Securities) Regulations, 2018.

What this means practically: all eligible shareholders will get a proportionate opportunity to tender their shares. You do not have to rush to sell in the open market hoping the company picks them up. Instead, a formal offer process will be opened, details of which will be laid out in the Letter of Offer — a document that Bajaj Auto will release in accordance with SEBI's buyback regulations.

This method is generally considered more better, since every eligible shareholder gets a fair shot based on their holding, rather than the company quietly buying shares from whoever sells at the lowest price in the market.

Who Are the Current Shareholders and What Does It Mean for the Buyback?

• Promoter and Promoter Group hold around 55.01% of the company — the controlling stake sits firmly with the Bajaj family.
• Indian Financial Institutions, Banks, Mutual Funds and Insurance Companies together account for about 14.47%.
• Foreign Institutional Investors and FPIs make up roughly 8.82%, while NRIs and DR holders add another ~0.76%.
• Indian Public, Corporates and others hold approximately 20.94% — a significant retail and domestic institutional chunk.

For tender offer buyback, the entitlement ratio is decided on a proportional basis depending upon the category. The retail shareholders who have investments of up to ₹2 lakh in value in the buyback price qualify for a reserved allotment and enjoy a little more favorable acceptance ratio than larger institutional shareholders.

A Flexibility Clause Worth Noting

There is one clause in the board approval that deserves attention. Under Regulation 5(via) of the Buyback Regulations, Bajaj Auto's Board or Buyback Committee has the right to revise the buyback price upward and reduce the number of shares proportionally, right up to one working day before the record date — as long as the total buyback size stays unchanged.

This is not unusual, but it is worth keeping in mind. The price and share count could technically be adjusted before 23 June 2026.

Why Companies Do Buybacks — And What It Signals

Buybacks are not charity. When a company spends thousands of crores repurchasing its own shares, it typically signals that management believes the stock is undervalued, or that the company has surplus cash with no better deployment opportunity on the horizon.

For Bajaj Auto, which has consistently delivered strong profitability across its two-wheeler and three-wheeler segments, a buyback of this scale reflects confidence in the balance sheet and a shareholder-friendly capital allocation policy. It also has the effect of reducing the total share count, which can improve earnings per share going forward — a metric institutional investors watch closely.

What Should You Do Now?

If you are an existing Bajaj Auto shareholder, the key action point is simple: ensure your shares are held in your demat account before the record date of 24 June 2026 if you wish to be eligible to participate.

Once the Letter of Offer is released, the exact details of this buyback will be available. It will contain the exact entitlement ratio, the tendering process, timelines, and the account to which buyback proceeds will be credited. Do not rely on third-party summaries for that document — the details will matter.

As we know participation in a buyback is a choice, not an obligation. Evaluate whether tendering makes sense given your own cost of acquisition, tax implications, and long-term view on the stock before deciding.

-Tanisha Mulewa, Team Research Bigul

Bonanza Portfolio Limited is a member of NSE & BSE with SEBI Regn. No.: INZ000212137 | SEBI Regn. No. DP: IN-DP-62-2015 | PMS: INP 000000985 | Research Analyst ID: INH100001666)

Disclaimer: This article is based on disclosures made by Bajaj Auto Limited to BSE and NSE dated 6 May 2026 and 18 June 2026. It is intended for informational purposes only and does not constitute investment advice.